This article will provide an introduction to and an explanation of how to participate in ErgoPad IDOs by covering the basics that are required in order to participate. Let’s get started with the basic concepts that are listed below.
What is an IDO?
An Initial DEX Offering, or IDO in short, is a crowdfunding method that allows upcoming new projects to launch their native token or coin via decentralized exchanges.
What is ErgoPad?
ErgoPad is a project incubator offering token IDOs which provide funding for new projects within the Ergo ecosystem. Ergopad released its own native token through an IDO (Initial Dex Offering), and users are now able to stake Ergopad tokens through smart contracts on-chain. If you stake ErgoPad tokens and reach one of the staking tiers, you’ll be given an opportunity to contribute to the DAOs of projects launched through the Ergopad platform, before they go live on any dex.
How do I get ErgoPad tokens?
ErgoPad tokens can be obtained in two ways: You can use ErgoDex, a decentralized exchange, to buy ErgoPad at this time. You can trade your ERG tokens on ErgoDex after you’ve set up an Ergo Wallet and acquired some ERG tokens.
Secondly , you can obtain ErgoPad tokens by mining through the ErgoPad subpool through Getblok.io, in which a portion of the mining rewards are paid out in ErgoPad tokens.
- Create an Ergo Wallet: Here is a blog post by the Ergo Foundation explaining how to create an Ergo wallet, and a list of verified ERG wallets.
- Mine some ERG or acquire it on an exchange: You can either aquire some ERG on an exchange that supports Ergo trading or by mining ERG.
- ErgoDex dApp: Visit the ErgoDex dApp, to exchange your ERG tokens in exchange for ErgoPad tokens.
Now that you have some ErgoPad tokens, congrats! But how do you actually take part in ErgoPad IDOs? Let’s give it a look!
The IDO process
The basic idea behind how an IDO works is that teams apply for an IDO on our apply page, our team looks over their application and project, and once we did our background check and if the project is accepted, we announce their IDO details and explain their project.
The IDO may have two or three rounds of fundraising. The first round is the staker round, in which only people who have reached a staking tier can take part. The second round is the seed round, which is open to the public, but people who have reached a staking tier get early access. The third round is the strategic round, which is also open to the public on a first-come, first-served basis. The difference between these rounds is that in the staker rounds, the price per token is much lower than in the seed or strategic rounds, and you are guaranteed an allocation. In the seed and strategic rounds, on the other hand, the price per token is higher, and allocation is based on who signs up first.
What is a staking tier and how do I reach it?
A staking tier is kind of like a level. In this case, it shows how many ErgoPad tokens someone is staking. The more tokens you stake, the higher your staking tier will be, and as a result, you will have more allocation weight in staker rounds of each IDO. There are 7 different levels of staking. For the mini level, which has an allocation weight of 4, the minimum number of tokens you need to stake is 12,500 ErgoPad tokens. For the Alpha staking tier, you need to stake 25,000 ErgoPad tokens. At this level, your allocation weight will be 10, which is more than double what it was before.
That means the higher your staking tier, the more allocation you will guarantee, and the more tokens you can aquire on the IDO.
How can I stake ErgoPad tokens?
To stake your ErgoPad tokens, you need to go to our platform and connect your wallet. Once you’ve done that, you can go to our staking page and use the drop-down menu to choose the token you want to stake. After reading about how to stake, you have to agree to the terms and conditions. Once you’ve done that, a window will pop up and ask you how many tokens you want to stake and the address of your wallet. After you fill out the fields, you need to sign the transaction on your wallet provider.
Congratulations, you now staked your first ErgoPad tokens!
How do I sign-up for each projects IDO?
Each round has it's own whitelisting form with a specific timeframe in which you need to sign up with your wallet address to be involved in the snapshot.
One day before the contribution starts, the sign-up form for whitelisting closes, and right after that, a snapshot is taken. Once the snapshot is taken, we airdrop whitelist tokens to all of those wallets, letting them know exactly how many tokens they can obtain. Please keep in mind that you can only acquire as many tokens as there are whitelist tokens in your wallet. For example, if you have 15 Ergo-Lend seed whitelist tokens, you can obtain15 Ergo-Lend tokens in the seed round.
Once the contribution form is available, you will need to connect your wallet with the whitelist tokens to our platform and then go to the form. There, you’ll need to fill out a form with the amount you want to buy (maximum amount or a specific amount), the currency you want to contribute with, and then you need to sign the transaction. Once the transaction is submitted you will receive a vesting key, which includes all your aquired tokens.
How can I claim vested tokens?
Once you received a vesting key after the contribution, you can connect your wallet which holds the vesting key with our platform and visit our dashboard. When you scroll down on our dashboard, you will see a vesting contracts section. Daily or monthly you can claim your tokens there, and check how many tokens left or how many tokens can be claimed. On a side note, you can redeem multiple keys per block, you don’t need to wait for block confirmations.
Where can I check the event dates and IDO details for each project?
In our project page section, each IDO project has its own page. This page has a short description of the project, information about the team, IDO details and dates, tokenomics, and social media accounts.
Also, make sure to follow us on social media and turn on the notifications button so you don’t miss any important dates or events. On a side note, we have included important dates in our weekly project updates on Medium.
Thanks for reading, and see you next time.
-The Ergopad Team